36% Hedge Funds and 32% Managers with $10B in AUM Expect to Increase Crypto Exposure

36% Hedge Funds and 32% Managers with $10 Billion in AUM Expect to Increase Crypto Exposure: EY Survey

As the industry better understands the asset class, “the alpha-generating opportunities will certainly create more incentive for alternative fund managers to participate in this strategy.”

Only 1 in 10 managers currently have exposure to cryptocurrencies, according to a survey published on Monday by one of the big four accounting firms Ernst & Young. But the good thing is firms are planning to increase their exposure in the coming year.

While 10% of the hedge fund managers have exposure to crypto, a mere 4% of the private equity managers are currently reporting crypto allocations through diverse means such as crypto derivatives, listing funds, and crypto companies. AUM dedicated to crypto also remains small, at 1%-2% for hedge fund managers.

But in the next one to two years, more than 20% of institutional investors and 25% of hedge fund managers said they expect to increase their exposure to cryptocurrencies.

Among these investors, the largest managers are most likely to increase their exposure, with 36% of hedge fund managers that have over $10 billion in AUM and 32% of managers with $2 billion – $10 billion in AUM reporting that they expect to increase their crypto AUM, as per the report.

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When it comes to barriers to investing in crypto, the number one was that crypto does not align with their investment strategy, followed by volatility, regulatory uncertainty, lack of understanding of crypto, and immature market infrastructure.

Tax implications, lack of suitable investment opportunities, crypto not being ESG-friendly, and crypto being a bubble were the lowest factors preventing them from investing in crypto assets.

Greenwich Associates conducted the survey from July to September 2021 that polled 264 alternative institutional investors collectively holding about $5 trillion.

“2021 appears to be an inflection point where this asset class is gaining the attention of all institutional alternative fund managers,” notes the study. It further adds that alternative fund managers have become more active participants in crypto assets, drawn by uncorrelated returns and continued investment in institutional-grade infrastructure to support the space.

“As the industry and regulators continue to better understand this asset class, the alpha-generating opportunities will certainly create more incentive for alternative fund managers to participate in this strategy.”

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Author: AnTy

Bitcoin Reacts to Biden Picking Jerome Powell as Federal Reserve Chair For A 2nd Term

Bitcoin is currently hovering around $56k and Ether above $4,000 while funding rates normalize, indicating euphoria not high in the market.

Bitcoin jumped 5.3% to nearly $59,550 as Federal Reserve Chairman Jerome Powell got nominated for a second term. The nomination next heads to the Senate for confirmation.

Powell guided the US central bank and the nation’s economy through the Covid-19 pandemic by implementing unprecedented monetary stimulus.

President Joe Biden announced Monday following speculation that Governor Lael Brainard might get the spot who will instead be a vice-chair of the board of governors. Biden said in a statement,

“As I’ve said before, we can’t just return to where we were before the pandemic, we need to build our economy back better, and I’m confident that Chair Powell and Dr. Brainard’s focus on keeping inflation low, prices stable, and delivering full employment will make our economy stronger than ever before.”

Biden also praised the Fed for its “decisive” actions in the early days of the pandemic, which included $120 million monthly bond purchases, cutting interest rates to near zero, and an array of lending programs.

Now markets are watching closely the pace the Fed will unwind its massive policy support as officials have already said they will start tapering bond purchases that could conclude in late spring or early summer 2022 in response to rising inflation. Interest rate hikes would come after that.

According to Morgan Stanley economists, the Fed will wait until 1Q23 to make its first interest rate hike despite their projection that US unemployment will fall to 3.6% by the end-2022.

Falling core PCE inflation and rising labor force participation are two drivers for no hikes in 2022, as per the bank’s economists. According to them, central banks may ultimately prove dovish, which may not be immediately apparent, “an uncertain dynamic that could push yields and USD higher.”

Dovish and Fed is positive for Bitcoin, and so is lower yields as negative real yields (inflation-adjusted) present a challenge for long-term asset allocators which may look to diversify into riskier assets as we saw with Houston Firefighters’ Relief and Retirement Fund becoming the first U.S. public pension plan to invest directly in Bitcoin and Ether.

As of writing, Bitcoin is hovering around $56k and Ether above $4,000. However, the latest weakness in price action for the past couple of weeks has people losing confidence in the continuation of the bull market.

“I’m not short or saying mkt implode imminent, might short on derivs if time feels right, but atm feeling pretty neutral short term,” said trader CL. “This mkt is pretty fkn frothed up.”

Meanwhile, the Crypto Fear and Greed Index is currently in the neutral, giving a ‘50’ reading while last week it was at 72, indicating ‘greed.’

After last week’s drawdown, funding rates have also normalized, with the highest currently on Bybit at 0.0244% and in negative on FTX and OKEx.

“In crypto, euphoria can be appreciated in the funding rates. This is somewhat similar to credit spreads in traditional finance. If funding is not very high, there is no unsustainable euphoria,” noted trader and economist Alex Kruger.

Funding of perpetual contracts is currently at 0.01% while futures quarterly basis at 12.5%, but for these numbers to be concerned, they need to be greater than 0.05% and 18%, respectively, which hit 0.1% and 40% during April and May, Kruger said

“Can crypto still crash? Yes, most definitively. The Fed is in the process of getting hawkish and winter inflation prints can spook the market into thinking the Fed & the ECB may over react. But euphoria is most definitively not that high nor widespread.”

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Author: AnTy

Jack Dorsey’s TBD Is Building A Bridge Between Fiat and Crypto with Decentralized Identifiers

Jack Dorsey’s TBD Is Building A Bridge Between Fiat and Crypto with Decentralized Identifiers

The whitepaper of social media giant Twitter and payment processor Square CEO Jack Dorsey’s decentralized Bitcoin exchange has been published.

Calling for an inclusive economy, the TBD team talked about the need to build on-ramps where everyone can access and participate in the economy.

Thirteen years ago, the Bitcoin whitepaper was published, which “changed everything,” with the idea, “forged in math and game theory,” that “created a universal ledger and new currency that is native to the internet, accessible to all, and secured by competitive market forces,” noted the TBD developer in the official announcement.

Now, to unleash the potential of bitcoin and decentralized financial infrastructure while most people still live in the fiat world, Dorsey proposes building bridges between the fiat and crypto world.

“Through these connections, we will massively improve the accessibility and utility of crypto assets by reducing the overhead of moving in and out of these assets in order to perform daily economic transactions,” wrote the TBD developer.

In its explanation, they also noted the challenges to this vision, including regulation and that no interface with the traditional monetary system can be completely trustless, nor can we atomically swap crypto for fiat or real-world assets that require social trust.

As such, TBD is based on decentralized identifiers (DIDs) that enable verifiable digital identities to facilitate trustworthy exchanges between counterparties.

TBD proposes a solution that does not rely on a federation to control access to the network, has no governance token, and the protocol allows participants to negotiate trust directly with each other.

The tbDEX protocol will also facilitate the secure exchange of the minimum necessary identity information acceptable to counterparties in order to satisfy requirements and further claims to not collect or record any personally identifiable information.

“When we announced TBD to the world, we committed to being an open-source, open development, and open roadmap business,” they said.

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Author: AnTy

Australia’s $2.4 Trillion Pension Fund Industry Calls Crypto “Untested” and “Uninvestable”

Australia’s corporate watchdog ASIC Chair meanwhile is working with lawmakers to develop rules for crypto, which he said is “driven by extraordinary consumer and investor demand.”

Australia’s $2.4 trillion pension fund industry is slow to adopt cryptocurrencies as Ross Barry, who oversees A$27 billion ($19.5 billion) as chief investment officer of superannuation fund Spirit Super said that crypto is “too risky to be considered for institutional portfolios.”

This is because of the crypto’s extreme price swings, and as such long-term funds have to watch how the sector develops, Barry said in an interview.

“It’s still volatile and there are still significant governance risks around things like even down to how do you have custody.”

“I don’t think it’s fit for purpose for superannuation funds.”

According to Australian Taxation Office data, just A$212 million is invested in digital assets from a pool of A$822 billion self-managed pension funds, which have a higher likelihood of investment in crypto.

Growing Interest in Crypto

While Australia’s pension funds are yet to get comfortable with crypto, in other parts of the world, they have started to invest relatively small amounts in them. Just last month, the Houston Firefighters’ Relief and Retirement Fund bought $25 million worth of Bitcoin and Ether.

“I see this as another tool to manage my risk,” said Fund’s chief investment officer Ajit Singh at the time.

“It has a positive expected return and it manages my risk. It has a low correlation to every other asset class.”

A week ago, Steve Kurz, the global head of asset management at crypto asset manager Galaxy Digital, also said that the $100 trillion industry covering pension funds, endowments, and sovereign-wealth funds “believe in the crypto future” and Web 3.0, but do not know how to start.

According to a Fidelity Investments survey, most of the institutions are interested in crypto and plan to allocate to this new asset class by 2026.

Keeping An Eye On Its Potential

But Paul Schroder, CEO of AustralianSuper, the country’s largest pension fund with A$244 billion under management, said a key problem for crypto is a lack of an income stream.

“We don’t see cryptocurrency as investable for our members,” he said at a conference in Sydney on Monday but added that there is interest in decentralized finance (DeFi).

Meanwhile, Barry at Spirit Super is researching crypto, especially central bank digital currencies (CBDCs).

“It would be remiss of us not to keep a weather eye on the potential for cryptocurrency to become a more relevant part of the global currency system.”

“We’ve just taken the view that it’s just still too untested.”

Unlike pension funds, the country’s biggest bank, Commonwealth Bank of Australia, is all set to allow its 6.5 million shares to buy, sell, and hold crypto because, as per its CEO Matt Comyn, while there are risks in participating, “bigger risks in not participating.”

For Now, Investors Are On Their Own

On Monday, Australia’s corporate watchdog also said that it was working with lawmakers to develop rules for crypto, but until then, investors are “on their own.”

Australian Securities and Investments Commission (ASIC) chair Joe Longo told investors at the Australian Financial Review Conference to use “great caution” when investing in crypto because “at present many crypto-assets are probably not ‘financial products’ …. for the most part, for now at least, investors are on their own.”

The regulator said it was working with lawmakers who have proposed a licensing regime for crypto exchanges and to change laws to allow DAOs.

“Crypto is on our doorstep, here and now, and being driven by extraordinary consumer and investor demand. The implications for consumers are potentially huge.”

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Author: AnTy

El Salvador Announces Plan to Buy Half a Billion Worth of BTC to Fund the “Bitcoin City”

El Salvador Announces Plan to Buy Half a Billion Worth of BTC to Fund the “Bitcoin City”

To make El Salvador the financial center of the world, President Nayib Bukele announced the tax-free city, which will be funded by $1 billion worth of Bitcoin-backed bonds.

After adopting Bitcoin as legal tender alongside the US dollar, El Salvador is now planning to build the world’s first “Bitcoin City,” which will be free of income, property, and capital gains taxes and will be funded by Bitcoin-backed bonds.

President Nayib Bukele doubled down on using the cryptocurrency to fuel investment in the Central American country. Over the weekend, he shared the intention to issue the sovereign Bitcoin bonds.

The city planned in the eastern region of La Union will get geothermal power from volcanoes. Only value added tax (VAT) would be levied, and half of that would be used to fund the bonds issued to build the city while the other half would pay for services.

“Invest here and make all the money you want,” Bukele said at “Bitcoin Week,” a series of events in EL Salvador. “This is a fully ecological city that works and is energized by a volcano.”

Bitcoin City would be circular, with an airport, residential and commercial areas, and will also feature a central plaza designed to look like a bitcoin symbol. The public infrastructure would cost around 300,000 BTC, Bukele estimated.

“If you want bitcoin to spread over the world, we should build some Alexandrias,” said Bukele.

The initial Bitcoin bonds to fund the city would be issued next year, with Bukele suggesting it would be in 60 days.

The first 10-year issue, known as the “volcano bond,” would be worth $1 billion and issued on Bitcoin sidechain Liquid Network, said Samson Mow, chief strategy officer of blockchain technology provider Blockstream. The bond will be backed by Bitcoin and carry a coupon of 6.5%.

Half a billion dollars of that would be used to buy Bitcoin on the market, he said.

El Salvador has already bought 700 BTC through Mexico-based crypto exchange Bitso whose co-founder Pablo Gonzalez said,

“Money is changing in the world. El Salvador took a courageous step towards accelerating that change in money. They are leading the Bitcoin revolution.”

Some of the to-be-purchased Bitcoin will be sold by El Salvador after a five-year lock-up to fund the bond to give investors an “additional coupon.” Once ten such bonds were issued,$5 billion in Bitcoin would be taken off the market for several years, he added. Mow said,

“If bitcoin at the five-year mark reaches $1 million, which I think it will, they will sell bitcoin in two quarters and recoup that $500 million.”

El Salvador’s government is working on a securities law to facilitate this process, and crypto trading platform Bitfinex will get the first license to operate an exchange, which was also listed as the book runner for the bond.

“This is going to make El Salvador the financial center of the world,” Mow said.

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Author: AnTy

ZEC Pumps on PoS Pivot, Edward Snowden says Zcash “Meaningfully Advanced” What Crypto Could Do

ZEC Pumps on PoS Pivot to Reduce “Downward Pressure,” Edward Snowden says Zcash “Meaningfully Advanced” What Crypto Could Do

The privacy coin has seen a 56% spike in value to record 265% gains YTD, but it is still down 93.5% from its $3,192 ATH hit five years ago.

Electric Coin Co., the development team behind Zcash, reiterated its position on making a shift from proof-of-work (PoW) to proof-of-stake (PoS) and shared a roadmap for the same late last week.

This shift is to regain its users, as, after the introduction of ASIC miners in 2018, the amount of activity on the chain dropped by 80%.

“The best way for ECC to contribute to the Zcash community over the next three years is to release an official ECC wallet on top of a highly interoperable Zcash protocol that leverages proof-of-stake consensus,” said ECC.

The announcement had ZEC seeing over a 56% jump in its price to nearly $230. This year, ZEC is only up 265% but still down 93.5% from its all-time high of $3,192 hit five years ago.

Meanwhile, on Monday, renowned whistleblower Edward Snowden while advising against wealthy Venture Capitalists warning against Bitcoin while “hyping centralized garbage-coins” that they have an enormous stake in, also commented on Zcash, calling it a “decentralized, functional chain.”

Zcash also performs its specific and useful purpose of enabling private transactions “extremely well” even years later. “I actually used it back then, and it worked,” he added.

While Snowden is not recommending anyone to buy the coin as he doesn’t see crypto primarily as an investment, he admires that “Zcash meaningfully advanced *what cryptocurrency could DO” given that Bitcoin hasn’t addressed its enormous on-chain privacy problem.

“What I want to see is a world where anyone can pay for anything, anywhere, at any time. That doesn’t happen without privacy.”

The Roadmap

Zcash revealed its three-year roadmap on Friday, which, while “aggressive” and expansive, the team said is achievable.

In its vision of the future, ECC sees each individual as self-sovereign with no centralized gatekeepers to decide who can participate. And this revolution, according to them, reaches beyond finance.

In the world of web3, ZEC will be “a critical means for economic good and used in solutions that protect privacy and liberties,” said ECC. But for that, they need to make it easy for ZEC to be used as such; its product strategy is being evolved from engineering-driven to market- and user experience-driven.

In this direction, they will release a commercially available wallet on top of a highly interoperable Zcash protocol that leverages PoS consensus.

The wallet will allow ECC to engage directly with ZEC users, expected to release next year. As for the PoS shift, ECC believes this will reduce “downward pressure on the price of ZEC, as most miners immediately liquidate ZEC for BTC or fiat today.”

The team also expects the shift to increase the utility for ZEC through capabilities such as yield generation through staking and possibly on-chain governance mechanisms for ZEC hodlers.

With ZEC going PoS, ECC considers solutions like Cosmos to make cross-chain interoperability more accessible, more quickly.

Meanwhile, the team didn’t include programmability in the roadmap because it believes building interoperable bridges to other smart contracting platforms may be a better and more rapid path to realizing its benefits. As for scaling, they will devote resources to it, but instead of a separate effort, it is woven into user-focused work itself.

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Author: AnTy

Southeast Asia’s 2nd Largest Bank Doing “Serious” Working on Crypto to Address Customer Needs

Southeast Asia’s 2nd Largest Bank Doing “Serious” Work With Crypto to Address Customer Needs

Oversea-Chinese Banking CorpThe second-largest bank in Southeast Asia is considering setting up a crypto exchange in response to its customers’ needs.

“We are looking at it, and seriously there are some work being done in the bank,” Chief Executive Officer Helen Wong told Bloomberg Television when asked if the bank is considering offering crypto services.

OCBC has been holding $121 billion in assets under management at the end of last year.

While the bank won’t rush into the sector, Wong said it’s worth studying crypto technology due to its potential to boost efficiency.

“If you say we are looking at it, it is very much in addressing customer needs, but in a safe manner.”

“We want to help them to recognize the investment and how to handle it.”

Rival DBS Group Holdings Ltd. meanwhile is working on expanding its digital exchange to its crypto trading services to retail individuals next year. The crypto exchange was launched in December 2020, and just last month, its brokerage arm, DBS, obtained a license from the Monetary Authority of Singapore (MAS) to offer crypto services.

In a separate interview, Wong said OCBC is “not going to get into it just because it is hot or there is a demand from people” because the bank has responsibility and a “fiduciary duty to people.”

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Author: AnTy

Crypto Drivers Still looking “Incredibly Optimistic,” BTC Purchases Already Affecting “National Accounts”

The US Fed Governor calls Bitcoin “electronic gold,” says crypto is another asset “you can choose to hold. You can choose gold or bitcoin.”

Finally, into the weekend, cryptocurrencies are registering some greens.

After Bitcoin fell under $56k and Ether went below $4k on Friday, today we went as high as nearly $59k and $4,340, respectively. As of writing, BTC/USD is trading around $58,500, and ETH is hovering around $4,300.

The total crypto market is also slowly recovering from $2.59 trillion to back above $2.75 trillion.

“This correction seems more like a natural breather in a bull run, as well as a healthy flushing out of leverage,” said Noelle Acheson of Genesis Global Trading.

While some have started to doubt the bullishness of the market after the recent weakness, money hasn’t stopped flowing into the cryptocurrency industry. While in the private market, crypto firms continue to raise millions and billions of dollars to build the infrastructure, crypto products are also attracting money though the flow has subdued.

“It alludes to the fact that we’re also not overheated at the 60K market. There’s still a good way to go,” said Justin d’Anethan of crypto trading firm EQONEX.

Hunter Horsley, CEO of Bitwise, is of the same opinion based on “fundamental thesis and drivers of the space,” which he says “continue to look incredibly optimistic.”

Even global markets are consolidating after the gains recorded by the US dollar and bond yields in recent weeks.

Growing Adoption

This year crypto adoption has gone mainstream, with institutions pouring in. Australia is also joining in with its biggest bank, the Commonwealth Bank of Australia, to start offering its users the ability to buy, sell, and hold crypto because the bigger risk is not participating.

However, the county’s $2.4 trillion pension fund industry is still not all aboard. Ross Barry, who oversees A$27 billion at superannuation fund Spirit Super, said long-term funds have to watch how the sector develops, but volatility makes crypto “too risky to be considered for institutional portfolios.”

Not just user adoption, but countries are also recognizing crypto’s potential, with India planning to regulate crypto as an asset class. Also, Brazil’s central bank chief Roberto Campos Neto is saying that they are discussing a bill on how to regulate crypto as an investment class due to Brazilian purchases of bitcoin starting to affect import data.

“They have already started to affect national accounts, which means they have become an important instrument,” he said, adding, he wants to get more clarity on the government’s plan for cryptos.

Campos Neto also said that inflation expectations for next year are rising and shifting “a bit” away from their target, which the bank has been trying to control by raising interest rates. In addition, the Brazilian central bank is likely to revise its forecast for the country’s GDP growth next year to downwards, which currently stands at 2.1%.

“You Can Choose Gold Or Bitcoin”

Besides crypto, gold also fell to a one-week low on Friday, weighed by the gains in the US dollar and after Federal Reserve Board Governor Christopher Waller said Bitcoin is digital gold.

Waller also said the Fed should increase the pace of tapering to give more leeway to raise interest rates from virtually zero. An increase in rates and draining the liquidity from the system, however, is not good for the crypto market as during the last bull market, it “took the wind out of the sails of crypto was when interest rates rose, and liquidity was draining from the system,” said Jamie Cox, managing partner at Harris Financial Group.

On Friday, during a discussion with the Center for Financial Stability, when asked about the risks digital assets pose, Waller said,

“Bitcoin to me is basically electronic gold.”

“It doesn’t have any fundamental intrinsic value, but that’s okay. We’ve known from economics since 1958 that useless objects can have value.”

Most of the thousands of cryptocurrencies in existence have “zero value,” said Waller adding, Bitcoin is different.

“Once they pick up, then they become like electronic gold. They’re another asset you can choose to hold. You can choose gold or bitcoin, I don’t care. We don’t sit there worrying about gold prices destabilizing the financial system, per se.”

Meanwhile, the Fed official sees DeFi presenting new opportunities in terms of smart contracts, which are “amazing” and can be used to do “pretty impressive stuff with,” Waller said.

“There’s instant clearing and instant settlement…. So I think it has actually a lot of potential for trading going forward.”

Earlier this week, Waller also commented on stablecoins, saying while he understands the regulators wanting to force a new product into an old structure that would eliminate stablecoin’s key benefit arrangement of serving as “a viable competitor to banking organizations in their role as payment providers.”

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Author: AnTy

$3.5 Billion In Crypto Accounted for 93% of All Assets Seized by IRS in 2021: Report

$3.5 Billion In Crypto Accounted for 93% of All Assets Seized by IRS in 2021: Report

The agency expects to seize billions of dollars worth of crypto in the coming year after getting more ability to surveil crypto transactions in the infrastructure package, to counter which a comprehensive bipartisan bill has been introduced in the House.

The Internal Revenue Service (IRS) seized $3.5 billion worth of cryptocurrencies during the 2021 fiscal year, according to an IRS criminal investigation annual report published this week.

This figure accounted for 93% of all the assets seized by tax enforcement using this period.

Now, the IRS is expecting to seize crypto valued at billions of dollars linked to tax fraud and other crimes in the coming year as well, as per the agency’s head of criminal investigations.

“I expect a trend of crypto seizures to continue as we move forward into fiscal year ‘22,” IRS Criminal Investigation Chief Jim Lee said on a call with reporters. “We’re seeing crypto involved in a number of our crimes as we move forward.”

In its annual report, the IRS said cybercrimes affecting the US financial systems are seeing “exponential growth” and added that it is now prioritizing training on criminal schemes related to crypto.

Recently, Congress granted the IRS more ability to surveil crypto transactions in the infrastructure package President Joe Biden signed into law on Monday. The law contains the overreaching definition of crypto ‘broker’ to have them track and porter transactions to the IRS.

This week, a comprehensive bipartisan bill has been introduced in the House to clarify the definition of a broker and for other purposes.

This bill will “fix EVERYTHING wrong with the infrastructure bill’s crypto tax provision–including the unconstitutional §6050I individual reporting mandate,” said Jerry Brito, executive director of CoinCenter.

He noted that it would replace the overly broad definition of “broker” with one that is reasonably limited to exchanges that buy and sell crypto for customers, will only cover reporting information voluntarily provided by customers and held for legitimate business purposes, and will strike the expanded reporting requirement for digital assets.

“Blockchains, cryptocurrencies, & decentralized finance may still be new & evolving, but Congress must recognize these technologies are some of the most important innovations to come along in a generation,” said Congressman Tim Ryan, along with Patric McHenry, who introduced this legislation.

Congressman Ryan said a balance between consumer protections and reasonable oversight needs to strike while simultaneously providing these technologies with the space to grow, which is essential to taking advantage of this opportunity.

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Author: AnTy

Binance Now Supports Ether Layer 2 Arbitrum, CZ says Exchange Is Thinking of Lowering Fees

Binance Now Supports Ether Layer 2 Arbitrum, CZ says Exchange Is Thinking of Lowering Fees

The exchange is exploring charging less fees than its rivals, thanks to being profitable. Binance’s CEO says they are making billions of dollars in profit.

Binance has announced the completion of the integration of the Ethereum layer 2 solution, Arbitrum One mainnet. The leading cryptocurrency exchange said on Friday, has also opened deposits for ETH on Arbitrum One Layer 2.

Ether withdrawals for Arbitrum Open Network will be opened at a later date, but no announcement will be made for the same.

In other news, Binance’s US until is set to close its funding round in a month or two in which it may raise a “couple hundred million” dollars, said its CEO, Changpeng Zhao.

Speaking at the Bloomberg New Economy Forum in Singapore, Zhao said Binance.US has the option to go for an initial public offering (IPO) and that he wasn’t ruling out listing the parent company in the future either.

“I think it’s a couple hundred million dollars,” CZ said at the event, adding that he doesn’t know the exact number of the proposed fresh funding.

“For an IPO perspective, it’s probably best to have a few rounds of financing before that.”

When asked whether the company was making billions of dollars in profit, Zhao replied, “pretty much, yeah,” but didn’t provide a number. And since Binance is profitable, CZ said, they could potentially charge even lower fees than its rivals, and the exchange is thinking about it.

Currently, the exchange is experiencing increased regulatory scrutiny, but Zhao maintains that his company is in regular talks with regulators.

“We want regulation, I am not a complete libertarian, I’m not an anarchist.”

Binance is also prepared to announce “very shortly” the location where the company will have its headquarters, but the CEO said they are communicating its plan to regulators first.

Meanwhile, CZ bought his first home last month in Dubai to show his commitment to the place which he describes as “very pro-crypto.

“The government there is very progressive, and it’s a very good business environment.”

Singapore is another place he is committed to, where he has been living for two years. Binance Asia is among 70 other firms awaiting a permit from the Monetary Authority of Singapore (MAS), along with Coinbase, Huobi, and Upbit.

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Author: AnTy